Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (8) TMI 308 - AT - Income TaxDetermination of Income from house property - Suppression of rental income - Whether assessee is statutorily entitled to deduction of standard deduction @30% u/s 24 from the aforesaid alleged suppressed rental income? - HELD THAT:- AO was required to follow the procedure laid down in section 23 of the Act. He has to call for the evidence and prove that this property could fetch this much rent instead of unnecessarily pointing out peripheral defects in the agreement of the assessee. He could have determined annual letting value of the property. Both the Revenue authorities have miserably failed to follow procedure contemplated in section 23. The assessee has given a concession in rent to its tenant on the basis of some hard facts. It has been brought to my notice that this project never materialized, and M/s.Bharti Wallmart Pvt.Ltd. could not open the business centre. Inspite of that, they have paid rent for five years on the basis of this agreement. We could appreciate the case of the AO, if he has made reference to the rent deed of adjoining properties and pointed out that this leased property could be fetch this much rent, and therefore, the annual letting value of the assessee’s house property is to be determined equivalent to the amount on which original rent fixed between the assessee and BWP. After going through all the details no addition is required to be made by the AO. Rental income shown by the assessee deserves to be accepted in the absence of any other material collected by the AO. The addition by the AO is hereby deleted, and the ground of appeal of the assessee is allowed.
|